Bitcoin News Today: Bitcoin Nears $118K as Bollinger Bands Tighten to Two-Year Low

Bitcoin’s price volatility has narrowed to its tightest levels on the Bollinger Bands in nearly two years, signaling a potential breakout moment for the cryptocurrency. As of July 29, 2025, the indicator showed a narrowing of the bands, a technical pattern that often precedes a sharp price move in either direction [1]. Analysts have noted that such setups historically lead to significant price swings, especially when paired with strong fundamental tailwinds and growing institutional adoption.

In recent weeks, Bitcoin has been consolidating near the $118,000 level, with its realized capitalization surpassing $1 trillion and institutional demand outpacing mining output by a factor of ten [2]. The tightening Bollinger Bands coincide with rising demand for Bitcoin from major financial players, including Twenty One Capital, which recently increased its holdings by 5,800 BTC following a transfer from Tether [3]. The firm’s CEO, Jack Mallers, has publicly expressed optimism about Bitcoin reaching $150,000, citing the growing trend of institutional adoption and the recent approval of in-kind redemptions for all spot Bitcoin ETFs by the SEC [4].

Meanwhile, Michael Saylor’s firm continued to bolster its Bitcoin holdings, having recently used proceeds from a preferred stock offering to make a $2.4 billion purchase [5]. This move comes as Bitcoin’s four-year price cycle appears to be losing momentum, raising questions about how the market will evolve as traditional cycles become less predictive [6]. Some analysts argue that the market is maturing and that factors such as institutional flows and macroeconomic conditions are becoming more influential than technical patterns alone [7].

The potential breakout is also being closely watched in the context of broader market dynamics. The U.S. GDP grew 3% in the second quarter, while the U.S. dollar index hit a five-week high, creating a mixed environment for risk assets [8]. Although the Federal Reserve maintained its interest rates as expected, two members dissented, hinting at future policy uncertainty that could impact Bitcoin’s performance [9]. The recent hawkish remarks by Fed Chair Jerome Powell also pushed Bitcoin below $116,000 on July 30, adding to the volatility [10].

Despite these pressures, Bitcoin’s price action has shown resilience. Whale activity has surged, with some large holders accumulating as the price approaches key resistance levels [11]. Additionally, a significant $9 billion exit by a Satoshi-era whale earlier in July sparked debate about whether early adopters are losing faith in the asset, though Bitcoin quickly rebounded after the sale [12].

In the broader crypto market, Ethereum outpaced Bitcoin in July, with institutional inflows reaching a record $11.2 billion [13]. This trend highlights a shifting landscape where alternative coins are gaining traction, even as Bitcoin remains the dominant asset. Analysts at Citi have forecasted that Bitcoin could hit $135,000 by year-end in a base-case scenario and $199,000 under a bullish outlook [14]. Meanwhile, a Bitcoin whale recently bet $23.7 million on a rally to $200,000 by the end of 2025 [15].

The current tightening of the Bollinger Bands suggests a period of consolidation is ending, and the market is bracing for a potential move. Whether the price breaks higher or faces a correction will depend on how institutional buying continues and how macroeconomic conditions evolve, particularly with the Fed’s policy path still uncertain. For now, the stage is set for a significant price move, with $150,000 appearing within reach if the bullish momentum continues.

Source:

[1] Leap Digital Investments (https://leapdigitalinvestments.com.au)

[2] CoinDesk (https://www.coindesk.com)

[3] CryptoSlate (https://cryptoslate.com)